AMP clamps down on property investors
AMP Bank has joined the growing list of lenders to crackdown on property investors.
AMP yesterday unveiled pricing and policy changes for investment property loans.
The variable interest rates for new and existing investment property loans will increase by 35 basis points.
At the same time, for all new investor property loans, the maximum loan-to-value ratio (LVR) is reducing to 50%. This change applies to all new loans with an investment property as security and includes loans to SMSFs.
The changes to interest rates are effective 23 June 2017 for new customers and from 26 June 2017 for existing customers. LVR change is from 21 June for new investment property loans and 1 July for SMSF investor loans.
AMP Bank group executive Sally Bruce said the changes will help AMP manage its portfolio responsibly and align with regulatory requirements.
"These measures are needed to ensure we operate within our regulatory obligations.
"We're committed to managing our portfolio responsibly while balancing this with the interests of our customers.
"We are managing our loan book in a very active market and these changes follow recent shifts in competitor activity. We will continue to take the necessary steps for sound management of our regulatory requirements," she said.
Australian Property Journal